Chicago, Illinois 60604 Argued February 21, 2024 Decided February 22, 2024 Before… v. Five-Star Audiovisual, Inc

NONPRECEDENTIAL DISPOSITION
To be cited only in accordance with Fed. R. App. P. 32.1
United States Court of Appeals
For the Seventh Circuit
Chicago, Illinois 60604
Argued February 21, 2024
Decided February 22, 2024
Before
FRANK H. EASTERBROOK, Circuit Judge
MICHAEL B. BRENNAN, Circuit Judge
THOMAS L. KIRSCH II, Circuit Judge
No. 23-2402
PNC BANK, N.A., et al.,
Plaintiffs-Counterdefendants-Appellees,
v.
FIVE-STAR AUDIOVISUAL, INC.,
Defendant-Counterplaintiff-Appellant.
Appeal from the United States
District Court for the Northern
District of Illinois, Eastern Division.
No. 21 C 5419
Virginia M. Kendall,
Judge.
O R D E R
PNC Bank extended a line of revolving credit to Five-Star Audiovisual. A side
agreement provided that funds in its main checking account, in excess of a defined
limit, would be “swept” out of the account to reduce the loan’s balance. After Five-Star
took out a loan under the Paycheck Protection Program (PPP) during the COVID-19
pandemic, PNC placed those funds in the checking account and promptly swept them
back out to reduce the balance on the revolving line of credit. This led Five-Star to draw
more from the line of credit, which carried a rate of interest higher than the PPP loan.

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No. 23-2402 Page 2
This suit under the diversity jurisdiction began when PNC contended that some
outstanding balances remain unpaid. Five-Star filed counterclaims for fraud and breach
of contract based on the sweep of the PPP funds. The district court dismissed those
counterclaims, 2023 U.S. Dist. LEXIS 105569 (N.D. Ill. June 16, 2023). After all remaining
claims had been resolved and a final decision entered, Five-Star appealed with respect
to its counterclaims.
The district court wrote a thorough opinion addressing the counterclaims, and
we have little to add. We affirm the judgment substantially for the district court’s rea-
sons. As the district judge observed, Five-Star could have avoided the events of which it
now complains had it opened a second checking account to receive the PPP funds. 2023
U.S. Dist. LEXIS 105569 at *13. It did not do so and cannot blame PNC, nor has Five-Star
identified any provision of any contract that PNC violated or any false statement by
PNC on which Five-Star reasonably relied.
AFFIRMED

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